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Genesis Inc. has a convertible bond with face value of $1,000, coupon rate of 6.5% p.a., and with annual coupon payments for 6 years. The

Genesis Inc. has a convertible bond with face value of $1,000, coupon rate of 6.5% p.a., and with annual coupon payments for 6 years. The bond can be converted into 20 shares of common equity (currently trading at $50 per share). What will be the best option for the investor - to convert the bonds or to sell them? The required rate of return on this bond is 8%. You must show your calculation,

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